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2010-03-25:Residents invited to comment on City’s tariffs for water, electricity and waste removal   
 
All residents, business, institutions and affected stakeholders of Johannesburg have a month long opportunity to comment on the new system of tariffs that have been approved for public comment.
Public participation begins on 1 April and ends on 30 April 2010 to allow everyone to submit written comment on the draft budget and approved tariffs for the 2010/11 financial years. These documents are available from customer service centres in the Regions and the City website www.joburg.org.za. 

Among the other proposals from the city that will form the basis of the public participation are:
Johannesburg Water:
To continue to promote a culture of water conservation the differentiated tariff remains on the basis that high volume consumers will pay more than those who consume less. This will encourage high consumers to manage their consumption patterns.

Domestic water and prepaid water and sanitation 


  • 0 – 6kl Free 
  • above 7kl to 10kl per month – will pay R4.93/kl (5.8% increase) 
  • above 10kl to 15kl per month – will pay R7.31/kl (7.1% increase) 
  • above 15kl to 20kl per month – will pay R9.59/kl (9.1% increase) 
  • above 20kl to 30kl per month – will pay R11.98/kl (12.6% increase) 
  • above 30kl to 40kl per month – will pay R12.36/kl (14.1% increase) 
  • above 40kl per month – will pay R14.94/kl (14.6% increase) 


Commercial and industrial users

  • Consumption up to 200kl 14.1% 
  • Consumption exceeding 200kl 14.6% 
  • All other tariffs to be increased by 14.1%

“There is still an urgent need for consumers to reassess their consumption of scarce natural resources and to make a contribution to the global initiatives on climate change” says Councillor Parks Tau Member of the Mayoral Committee for Finance and Economic Development.
 
He said that the City nevertheless has a responsibility to provide the indigent with free basic water and electricity at lower rates. 

The city as per the poverty index proposes that the allocation of free basic water for registered indigents in Band 1 be 25L per person, per day, Band 2 be 35L per person per day and Band 3 be 50L per person per day.

Band 1 - Is the lowest level of subsidy, aimed at helping those on the borderline of poverty. 
Band 2 – is the middle level of subsidy, aimed at those who earn some formal income but whose earnings fall below the survival level defined by the poverty index. 
Band 3 – is the highest level of subsidy, aimed at those with no formal income living in the most deprived circumstances.


Proposed domestic sanitation tariffs

ERF Size (m²)                      
  2009/10 Tariff            
 (R/erf/month)  2010/11 Tariff 
(R/erf/month)  
Up to and including 300m² R66.27 75.61 
From 301m² to 1000m² R129.00 147.19 
From 1001m²to 2000m² R195.16 222.68  
Larger than 2000m² R281.20 320.85  
  
City Power:

Recent substantial increases in bulk purchase costs from Eskom and Kelvin Power station have resulted in substantial input costs for 

City Power. 

The following principles should serve as guidelines:

  • Lifeline will increase by 15%. 
  • Single phase will increase by 19% 
  • Three phase will increase by 19% 
  • Agriculture will increase by 24% 
  • Business will increase by 28.9% 
  • Large power users will increase 28.9% 

The City will continue to charge the 2c demand side management levy Electricity allocation to registered indigent is as follows:

  • Band 1 will be allocated 10 kWh per person per month (equal 50 kWh per month per household) 
  • Band 2 will be allocated 20 kWh per person per month (equal 100 kWh per month per household) 
  • Band 3 will be allocated 30 kWh per person per month (equal 150 kWh per month per household) 

Registered indigents will receive the following benefit

  • Band 1, 70% rebate on the refuse per month 
  • Band 2,100% rebate on refuse bill per month 
  • Band 3, 100% rebate on the refuse bill per month 

The current tariffs for refuse collection will result in the following in improved service quality for domestic round collections, improved cleanliness of public spaces and inner city areas, Increased by-law enforcement and improved cooperation with stakeholders through the city improvement districts (CIDs) and partnerships between the city, the private sector, communities and NGOs to implement demand side management such as waste separation at source and recycling initiatives.

Proposed rates and taxes

Category
Proposed Tariff (2010/11)      
(Cents in the Rand)
% increase  
​Agricultural
​ 0.004928
​ 12% 
​Business
​ 0.017248
​ 12% 
​Business Sectional Title​ 0.017248
​ 12% 
​Education​ 0.004928
​ 12% 
​Farming​
​ 0.004928​
​ 12% 
​Mining
​0.017248
​ 12% 
​Multiple purpose
​ 0.017248
​ 12% 
​ Municipal Not Rateable
​ 0 
​Municipal Rateable
​ 0.005914
​ 12% 
​Public Service Infrastructure
​0 
​Religious
0​
​Residential
​0.004928
​ 12% 
​Sectional Title 
​0.004928
​ 12% 
​State
​0.007392
​ 12% 
​Vacant
​ 0.019712
​ 12% ​
​Residential Property with Consent Use
​ 0.009856



Councillor Tau says, “The City believes that the current tariff structure is fair and the intention is to support consumers in their efforts to adjust their consumption and utilise resources responsibly”. 

Ends

Issued by 

Virgil James
Communications Specialist
City of Joburg
011 407 7226
082 467 9415